Kamran acca f1 mc qs.

1
Kamran Revision Kit.
F1 ACCA.
ACCOUNTANT IN BUSINESS
Version 1.0 Beta.
Introduction
1a Business organization and structure- structure and strategy 1
1b Business organization and structure- departments and functions 8
2 Information technology and systems
3 Influences on organizational culture
4 Ethical considerations
5 Corporate governance and social responsibility
6 The macro-economic environment
7 The business environment
8 The role of accounting
9 Control, security and audit
10 Identifying and preventing fraud
11 Leading and managing people
12 Individuals, groups and teams
13 Motivating individuals and groups
14 Personal effectiveness and communication
15 Recruitment and selection
16 Diversity and equal opportunities
17 Training and development
18 Performance appraisals

2
Chapter 1a. Business Organization and Structure and Strategy.
1. An Organization is a social arrangement which pursues collective goals, which controls its own performance.
A. True
B. False.
2. Organization is not preoccupied with performance.
A. True
B. False.
3. Organization accumulates and share knowledge.
A. True
B. False.
4. Organization enable people to be more ………………………………
A. Limited
B. Educated
C. Productive
D. None of the above.
5. Public sector companies are owned by the …………………………………
A. Foreigner
B. Locals
C. Government
D. NGOs.
6. The organization who converting one resources into another are …………………………….. E.g. Coal into electric.
A. Manufacturing
B. Service industry
C. Retail and distribution
D. Energy Sector.
7. Retailing and Distributors companies extract and refine raw material.
A. True
B. False.
8. …………………………………. Include retailing, distribution, transport, banking, various business services (e.g. Accountancy, advertising) and public
services such as education, medicine etc.
A. Agriculture
B. Manufacturing
C. Energy
D. Intellectual production
E. Service industries
9. Intellectual production companies produce food and beverage products.
A. True
B. False
10. Private Sector companies are owned by the central or local government or agencies.
A. True
B. False
11. Limited companies term limited liabilities means ………………………………………..
A .Risk is generally restricted to the amount that they have invested in the company
B. Risk is linked to investor personal holdings.
C. That the funds they invest in the company are secured.
12. A limited company has a separate legal personality from its owners (shareholders).
A. True
B. False.
13. The ownership and control of a limited company are not legally separate even though they may be vested in the same individual or
individuals.
A. True
B. False.
14. …………………………………………. Controls management and staff, and is accountable to the shareholders, but it has responsibilities towards both
groups – owners and employees alike.
A. Internal Auditors
B. Government agencies
C. Ngos
D. Board of Directors.
15. ……………………………………. Usually consists of career managers who are recruited to operate the business, and are accountable to the board.
A. External Auditors

3
B. Internal Auditors
C. Operational management
D. Support Staff.
16. Public limited companies are also known as public sector companies.
A. True
B. False
17. Which of the following is not the advantage of a limited company?
A. Separate legal personality
B. No restrictions on size.
C. Limited Liability
D. Ownership is legally separate from control.
E. Compliance cost.
18. Cooperative are owned by …………………………… who share profit.
A. Workers or Customers
B. Govt. And ngos
C. Owners and Management
19. An organization which is owned by its member rather than outside investors are called …………………………
A. Co operatives
B. Limited Company
C. Public Sector Companies
D. Mutual Association or Funds
20. Public sector companies can raise funds from which of the following ways?
A. Raising taxes
B. Making charges (service charges etc)
C. Borrowing
D. All of the above.
21. Public sector has a problem that they have to pay high rates for their borrowing from their lenders.
A. True
B. False
22. NGOs are directly linked with the local or central government and their prime aim is to make profits.
A. True
B. False
23. Mintzberg’s believes that all organizations can be analyzed into ……………………. Components.
A. 2
B. 4
C. 5
D. 7.
24. Which of the following is component of Mintzberg’s organization model?
A. Strategic apex
B. Techno structure
C. Support staff
D. Operating core
E. All of the above.
25. Strategic apex is the individual who carry out basic work in the organization.
A. True
B. False
26. ………………………… are the managers and the management structure work between the strategic apex and operating core.
A. Strategic apex
B. Operating core
C. Support staff.
D. Middle line.
27. Support staff is the help staff in the organization, such as secretarial, cleaning, repair and maintenance staff work.
A. True
B. False
28. Techno structure is staff without direct line management responsibilities, but who provide technical support. That is IT and Accounts.
A. True
B. False
29. When organization is sub-divided into specialist departments, with each department specializing in a particular type of activity.
E.g. marketing, finance and production. This type of departments are known as ……………………………………….
A. Geographic
B. Product / brand
C. Functional

4
D. Hybrid
30. One of the disadvantages of Geographical departmentation is its causes duplication and inconsistency in policy.
A. True
B. False
31. …………………………………. Is the division of a business into autonomous regions or product businesses, each with its own revenues,
expenditures and capital asset purchase programmers?’
A. Decentralized
B. Divisionalisation
C. Hybrid
D. Functional.
32. SBU stands for Standard business Understanding.
A. True
B. False.
33. Successful Divisionalisation requires certain key conditions. State which of the following is correct?
A. Must have properly delegated authority
B. Must be large enough to support the quantity and quality of management its need.
C. Must have potential of growth in its own area of operation.
D. Should be scope and challenge in the job of the management of each unit.
E. All of the above
F. None of the above.
34. Hybrid Structure are ………………………………………………………..
A. Functional Departmentation
B. Divisional Departmentation
C. Have both Functional and Departmental structure at the same management level
D. Mix of all Structures.
35. A simple structure is also known as entrepreneurial structure.
A. True
B. False
36. Which of the following are not the characteristics of simple structure?
A. Wide span of control
B. No middle line or hierarchy
C. Centralized system of command.
D. Group and consciences decision making.
E. Direct control over operating core.
37. ………………………………….. Organizations have an increase use of part time and temporary contracts of employment.
A. Centralize
B. Shamrock organization
C. Matrix
D. Hybrid.
38. Handy called shamrock as flexible firm.
A. True
B. False.
39. Shamrock organization has a fix employment no even in the time of recession or slow growth. They pay heavy amount on pensions, holiday
pay and health insurance.
A. True
B. False.
40. Shamrock organization self employed professionals are …………………………… (Give 2 best answers)
A. Permanent employee of the company.
B. Top management executives
C. Hired on contact on a project by project basis
D. They are paid in fee for results than of salary.
41. Span of control is also called and known as span of management.
A. True
B. False.
42. Span of control means ………………………………………..
A. Level of management in the organization
B. No of superior looking after one job
C. No of subordinate directly reports to its manager / superior.
D. No of managers responsible for internal control.
43. If manager have 7 subordinate the span of control will be 8.
A. True
B. False.

5
44. More non supervisory work on the manger will result in a narrow span of control.
A. True
B. False.
45. A tall organization with many management levels has a wide span of control.
A. True
B. False.
46. Scalar Chain means. ………………………………………………
A. No of subordinate reporting to a manager
B. The chain of command from most junior to senior
C. The chain of command from top to bottom
D. The chain of command from most senior to most junior.
47. Delayering is the reduction of the number of management levels from bottom to top.
A. True
B. False.
48. Delayering would:
A. Make an organization taller
B. Make an organization flatter
C. Make no effect.
49. In a small organization the span of control will be narrow because the numbers of employees are limited.
A. True
B. False.
50. Narrow span of control mean strict and close monitoring of subordinates which result in de-motivation of employees.
A. True
B. False.
51. Which of the following is not the level of strategy in the organization?
A. Corporate strategy
B. Business Strategy
C. Expenditure Strategy
D. Operational / Functional Strategy.
52. The distinction between corporate and business strategy arises because of the development of the divisionalised business organization,
which typically has a corporate centre and a number of strategic business units (SBUs).
A. True
B. False
53. The strategy which concerned with what type of business the organization is in is called ……………………………………………..
A. Business Strategy
B. Corporate Strategy
C. Market Strategy
D. Functional Strategy.
54. Corporate strategy has a long term impact.
A. True
B. False
55. …………………………………. Mean how an organization approaches a particular product area.
A. Market Strategy
B. Corporate Strategy
C. Employees Management
D. Business Strategy.
56. …………………………. Is a Company division, product line within a division, or single product or company brand that has an objective and
mission different from other company business and that can be marketed independently from the rest of the company?
A. Operational Strategy
B. Limited Company
C. Strategic business units or SBUs
D. Public Sector Co.
57. …………………………….. Deal with specialized areas of activity.
A. Functional / Operational Strategy
B. Business Strategy
C. Strategic business units or SBUs
D. Public Sector Co.
58. Strategic management is carried out by the senior management and is concerned with direction setting, policy making and crisis handling it
have time frame for implication of 3 to 5 years.
A. True
B. False

6
59. Operational management (carried out by supervisors and operatives) is concerned with routine activities to carry out tactical plans.
Decisions at this level would deal with short term matters.
A. True
B. False
60. Tactical management (carried out by middle management) is concerned with establishing means to the corporate ends, mobilizing
resources and innovating (finding new ways to achieve business goals). Decisions made at this level would have medium term implications.
A. True
B. False.
61. Organizations enable ……………………….: by bringing together two individuals their combined output will exceed their output if they continued
working separately.
A. Synergy
B. Accountability
C. Productivity
62. Their a different way that an organization can be different from each other. Which one of the following is incorrect?
A. Ownership / control
B. Activity / legal status
C. Profit and non profitable
D. No of worker and managers
E. Size / source of finance / technology.
63. ………………………………. Are the organizations which acquire raw material and by the application of labor and technology turn them into
product. Or in other words they add value to their purchase.
A. Service industries
B. Agriculture
C. Energy
D. Manufacturing.
64. Cooperatives are owned by workers or customer, which of the following feature is not belongs to it?
A. Open membership
B. Cooperative dissolves if any member quit.
C. Democratic control (one member, one vote)
D. Distribution of the surplus in proportion to purchases
E. Promotion of education.
65. A……………………… span of control results in each manager supervising a small number of employees.
A. Small or narrow
B. Large or wide
C. Tiny
66. A …………………… of management occurs when more subordinates report directly to a given manager.
A. Small or narrow
B. Large or wide
C. Tiny
67. A …………………………….allows a manager to communicate quickly with the employees under them and control them more easily
A. Large or wide span of control
B. Small or narrow span of control
68. …………………………… span of control is economical for the company.
69. One of the advantages of the narrow span of control is that its required low management skills.
A. True.
B. False.
70. ………………………………. Span of control is faster and reach the top management in quick time.
71. Which of the following is not a part of shamrock organization flower diagram?
A. Self employed professionals
B. Contingent work force.
C. Techno structure.
D. Consumer
E. Professionals.
72. ………………… is recognized in law as a person that can own assets and owe money in its own name. It’s separate in the law from its owners.
A. Proprietor ship
B. Sole traders
C. Limited company

7
73. The ……………………………… in large companies allows the directors and managers to run the company on their behalf.
A. None executive directors
B. Shareholders
C. Employee’s of the company
D. Customers and civil society.
74. …………………….. is not a criminal activity. It’s allow multinational groups of companies to legitimately to avoid the payment of tax.
A. Tax evasion
B. Tax service
C. Tax system
D. Tax avoidance.
75. The accounting department is subdivided into three parts. Which of the following is incorrect?
A. Financial accounting
B. Management accounting
C. Treasury or finance dept.
D. Financial advisory dept.
76. Public sector companies are ultimately accountable to ……………………………………..
A. United Nations
B. Prime minister
C. Finance Minister
D. Parliament.
77. Shamrock organization. …………………………. Pay is tied to organizational performance.
A. Contingent work force.
B. Self Employed.
C. Professional core
78. Shamrock organization. ………………………. Are temporary and part time worker who will experience short periods of employment and long
period of unemployment?
A. Contingent work force.
B. Self Employed.
C. Professional core
D. None of the above
79. Which of the following is not the example of Public Sector Company?
A. Government hospital.
B. Government Collages.
C. Wall mart store
D. Police department.
80. NGO and Charities are not required to produce accounts in law.
A. True.
B. False.
These MCQs are prepared after hard work and keeping Students help & need in mind. In
order to keep the work updated with professional’s we need donation for payments in
future. If you like to help others you can add your contribution on the following link.
Https://www.paypal.com/cgi-bin/webscr?cmd=_s-xclick&hosted_button_id=U3HFU2THV2WJ8
Answers of Chapter 1a.
1 A 16 B 31 B 46 D 61 A 76 D
2 B 17 E. 32 B 47 A 62 D 77 C
3 A 18 A. 33 E 48 B 63 D 78 A
4 C 19 D 34 C 49 A 64 B 79 C
5 C 20 D 35 A 50 A. 65 A 80 B
6 D 21 B 36 D 51 C 66 B 81
7 B 22 B 37 B 52 A 67 B 82

8
8 E 23 C 38 A 53 B 68 A 83
9 B 24 E 39 B 54 A 69 A 84
10 B 25 B 40 CD 55 D 70 A 85
11 A 26 D 41 A 56 C 71 C 86
12 A 27 A 42 C 57 A 72 C 87
13 B 28 A 43 B 58 A 73 B 88
14 D 29 C 44 A 59 A 74 D 89
15 C 30 A 45 B 60 A 75 D 90
Explanation.
2. Organization is preoccupied with performance.
7. Retail and Dist companies delivering goods to the end users. Above is the definition of manufacturing co.
9. False. They produce software, publishing, films, music etc.
10. Private sector is owned by individuals and others. Govt. Owned public sector companies.
13. The ownership and control of a limited company are legally separate.
16. Public limited is private sector while public sector is govt. Owned companies.
17. Compliance cost one of the disadvantages of the limited co.
18. Co-operatives are businesses owned by their workers or customers, who share the profits.
21. They get advantage of low interest from bank because they are backed up by Govt.
22. They have no link with Govt. And they are none profitable organization.
25. Strategic apex is the top management in the organization. Basic work is done by the operational core.
32. SBU stands for Strategic business unit.
33. Simple structure is a one man show. The apex control and direct all, thing move around him.
36. Simple system there is no middle management. Strategic apexes make all decision.
39. They allow rapid downsizing in slow growth, and safe all expenditure.
43. No then the span of control will also be 7.
45. More level of management result in narrow span of control. Or week span of control.
49. Because in narrow span of control manger control very few subordinates.
67. A narrow span of control allows a manager to communicate quickly with the employees under them and control them more easily
68. It costs less money to run a wider span of control because a business does not need to employ as many managers.
69. It requires a higher level of management skill to control a greater number of employees, so there is less management skill required
70. There are less layers of management to pass a message through, so the message reaches more employees faster.
74. Tax evasion is a criminal activity. Its involve breaking of law for not declaring the income to save tax.
80. They are required to.
Chapter 1b. Departments and functions
1. Which of the following is not the element of marketing mix?
A. Product
B. Price
C. Quality
D. Promotion
E. Place
2. Marketing mix is also referred as …………………………
A. 3Ps
B. 4Ps
C. 5Qs
D. 3S
3. A ……………………… product is a product essential or main features.
A. Core product
B. Augmentations
C. Class
D. Form / type
4. Additional benefits which are not directly associate with the product but are complementary with the product are …………………………
A. Product Gift
B. Core product
C. Marketing mix
D. Augmentation
5. Product form refers to the different type of product with in a product class. E.g. Car, truck, van and bus etc.
A. True
B. False.

9
6. …………………………. Is a low price charged to persuade as many people as possible to buy the product in its early stage or at the time of
introduction of the new product?
A. Skimming
B. Penetration pricing
C. Loot sale
D. Stock out sale.
7. ……………………………… is a price which gave company the highest level of profit or company enjoy abnormal profit. Which restrict lot of people
to afford it?
A. Limited time offer
B. Penetration pricing
C. Limited edition.
D. Skimming
8. Price is a weapon against ………………………………..
A. Traders
B. Customers
C. Workers
D. Competitors
9. When most of the administration work is carried out by the HQ this type of act is known as ……………………………….
A. Head office interference.
B. De-Centralized
C. Centralization
D. Security/control.
10. Which of the following is the role of the finance function?
A. Raising funds
B. Recording and controlling
C. Provide information to the managers
D. Reporting to the stakeholders
11. Following are the duties of the financial management. Which one is correct?
A. Investment decisions
B. Financing decisions (how to pay for investment)
C. Dividend decisions
D. Operating decisions which effect profit.
12. Management of finance means book keeping, cash handling, invoicing and other financial documentation, in short accounting.
A. True
B. False
13. ……………………….. Is a market for trading short term financial instruments, bills of exchange and certificates of deposits.
A. Stock Exchange
B. Bond Exchange
C. Forex Exchange.
D. Money market.
14. Retained earnings mean expectation of profit in coming years.
A. True
B. False.
15. The international money and capital market deal in euro commercial papers, euro bonds, and euro currency borrowing.
A. True
B. False.
16. According to law, Directors of the company are not responsible for preparing the book of accounts along with detail of assets and liabilities
and the details notes.
A. True
B. False.
17. Working capital consists of the following. State the one which is incorrect?
A. Cash
B. Account receivable
C. Cost of goods sold.
D. Accounts payable
E. Inventory
18. Large companies are not required to disclose their policies on paying suppliers in their annual financial statement.
A. True
B. False
19. The prime objective of R&D is to do product research not market research.
A. True

10
B. False
20. ……………………………….. Deal with organization, staffing levels, motivation, employee relations and employee services.
A. Accounts Department
B. Administration
C. R&D
D. HR Department.
21. Which of the following is/are not objectives of human resource management?
A. To meet the organization’s social and legal responsibilities relating to the human resource.
B. To manage an organization’s relationship with its customers
C. To develop human resources that will respond effectively to change.
D. To obtain and develop the HR required by the organization.
E. To create and maintain a co-operative climate of relationship with the organization.
22. Which of the following is false statement about the HRM importance?
A. Its increase productivity by effective training.
B. Its enhance group working by developing multi skilled teams.
C. Its help accounts department in recording transactions.
D. Its reduce staff turnover.
23. Selection is important to ensure the organization obtains people with the qualities and skills required.
A. True
B. False.
24. ……………………………. Enables targets to be set that contribute to the achievement of the overall strategic objectives of the organization.
A. Selection
B. Interview
C. Learning
D. Appraisal.
25. The reward system should motivate and ensure valued staffs are retained.
A. True
B. False.
26. Downsizing, Training and retraining are not a part of a HR plan.
A. True
B. False.
27. Centralized organization is a one in which authority is concentrated on different places.
A. True
B. False
28. Which of the following are not the advantages of Centralization?
A. Decision are made at one placed and are easy to implement
B. Senior managers can take a wider view of the problem or task or objective
C. Improve motivation of Jr. Managers as they get chance to take responsibility.
D. Quality of decision due to experts and skills on top level
E. Crisis is handling more quickly and effectively.
F. Policy and procedures are standardizing all over the organization.
29. Which one of the following is potential advantage of decentralization? (PP)
A. Greater control by senior management
B. Risk reduction in relation to operational decision-making
C. More accountability at lower levels
D. Consistency of decision-making across the organization
30. One of the greater advantages of centralized system is that management is in a better position to understand the local and geographical
problems.
A. True
B. False
31. De-centralization is more effective and important in a rapid changing market for decision making.
A. True
B. False
32. Because of communication technology it is now easy for the local management to take decision in decentralized organization with the help
of data and info available from Head office.
A. True
B. False
33. The board of directors of a limited company is an example of ………………………………………. Committee.
A. Standing committee.
B. Ad hoc committee
C. Joint committee
D. Executive committee.

11
34. ………………………….. Committee has the power to govern or administer.
A. Sub committee
B. Joint committee
C. Executive committee
D. Management committee.
35. ……………………………. Are formed for a particular purpose on a permanent basis. Their role is to deal with routine business delegated
to them at weekly or monthly meetings.
A. Management Committee
B. Standing committees
C. Executive Committee
D. Ad hoc Committee
36………………… Committee formed for a specific task or objective, and dissolved after the completion of the task or achievement of the
objective.
A. Standing committee.
B. Ad hoc committee
C. Joint committee
D. Executive committee.
37. A committee that is a subset of a larger committee is called a subcommittee. Or which is appoint by the committee it’s self to solve or help
in some of its own work.
A. True
B. False
38. ……………………… is original research to obtain new scientific or technical knowledge or understanding.
A. Applied Research
B. Development Research
C. Pure Research
D. Process Research
39. ……………………………….. Is the use of existing scientific and technical knowledge to produce new and improved product or systems?
A. Pure Research
B. Process Research
C. Product Research
D. Development Research
40. …………………………. Research is also like the pure research but have a particular aims or subject.
A. Process
B. Product
C. Development
D. Applied
41. Process research is based on creating new products and developing existing ones.
A. True
B. False
42. Which of the following is not the purchasing mix?
A. Quality
B. Quantity
C. Price
D. Promotion
E. Delivery
43. Purchasing is 'the acquisition of material resources and business services for use by the organization.
A. True
B. False.
44. Production management. Which of the following is not the long term decision?
A. Selection of equipment and process
B. Job design and method
C. Inventory control.
D. Factory location and lay out
E. Ensuring the right no of employee’s.
45. Production management. Which of the following in not the short term decision?
A. Production and control
B. Selection of equipment and factory.
C. Quality control / maintenance
D. Inventory control / labor control
46. Services are tangible in nature and can be stored.
A. True
B. False
47. Selected kind of services purchases results in transfer of property.

12
A. True
B. False.
48. The……………………… function manages an organization’s relationships with its customers.
A. H R
B. Production
C. Sales
D. Marketing.
49. Marketing support the direct sales force by mean of telemarketing, respond to inquiries, and customer data management etc. It also
supports the sales by providing brochures and catalogues to the customers.
A. True
B. False
50. Customers will buy whatever we produce – our job is to make as many as we can'. (Demand exceeds available supply.) Is an example of
………
A. Market orientation
B. Sales orientation
C. Product orientation
D. Production orientation.
51. Customers are naturally sales resistant so the product must be sold actively and aggressively and customers must be persuaded to buy them
is an example of sales orientation.
A. True
B. False
52. Product orientation, a variant of production orientation means ………………………………………………..
A. Customers are naturally sales resistant so the product must be sold actively and aggressively and customers must be persuaded to buy them
B. Customers will buy whatever we produce – our job is to make as many as we can
C. Add more features to the product – demand will pick up
53. Research is further divided into 3 parts. Which of the following is incorrect?
A. Pure research
B. Applied research
C. Development Research
D. Functional Research.
54. Process research involves attention to how the goods/services are produced. Process research has these aspects. State the incorrect.
A. Processes
B. Productivity
C. Planning
D. Quantity
E. Quality Management.
55. Marketing activities in organizations can be grouped broadly into four roles. Which of the following is incorrect?
A. Sales Support.
B. Feed back.
C. Marketing Communication
D. Operational management.
E. Strategic management.
56. Marketing orientation means. ……………………………………………
A. Add more features to the product – demand will pick up'. Such firms do not research what customers actually want.
B. Customers are naturally sales resistant so the product must be sold actively and aggressively and customers must be persuaded to buy them.
C. Customers will buy whatever we produce – our job is to make as many as we can'
D. The key task of the organization is to determine the needs, wants and values of a target market and to adapt the organization to delivering
the desired satisfactions more effectively and efficiently than its competitors.
57. Marketing management aims to ensure the company is pursuing effective policies to promote its products, markets and distribution
channels. This involves exercising strategic control of marketing, and the means to apply strategic control is known as the……………………………
A. Marketing Audit.
B. Sales Audit.
C. Internal Audit.
D. Corporate Audit.
58. AIDA stands for……………………………………..
A. Awareness, Interest, Desire and Attitude.
B. Accountability, Information, Desire and Action
C. Awareness, Interest, Desire, Action
59. ABC Corporation hired three members in the account department under the post of 1. Financial Accountant. 2. Management accountant. 2.
Treasurer. Which of the following two are the responsibilities of financial accountant?
A. Prepare the financial statement for the company.
B. Budget analysis and control.
C. Invest surplus cash funds in the money market.

13
D. Provide accounting reports and data to other departments.
60. Which of the following are not the duties of the committee secretary?
A. Fixing the date and time of the meeting
B. Choosing and preparing the location of the meeting
C. Arranging entertainment activity for the members.
D. Preparing and issuing various documents
Answers ofChapter. 1b.
1 C 11 E 21 B 31 A 41 B 51 A
2 B 12 A 22 C 32 A 42 D 52 C
3 A 13 D 23 A 33 D 43 A 53 D
4 D 14 B 24 D 34 C 44 C 54 D
5 A 15 A 25 A 35 B 45 B 55 B
6 B 16 B 26 B 36 B 46 B 56 D
7 D 17 C 27 B 37 A 47 B 57 A
8 D 18 B. 28 C 38 C 48 D 58 C
9 C 19 A 29 C 39 D 49 A 59 AD
10 E 20 D 30 B 40 D 50 D 60 C
Explanation.
14. Profit earned by the company kept with it for future needs.
16. It’s the responsibility of the director to prepare the books of the company.
18. No they are required to do so.
19. The real work is product. They will also do market work but mandatory.
26. They are part of HR plan
27. Authority is at one place.
30. Locals problem are better solved in De-Centralized system.
41. Process research is to improve the method of making things. Mean reducing steps and improving quality.
Chapter 2. Information technology and system
1. Information should be obtained at any cost, regardless of its benefits.
A. True
B. False.
2. The quality of good information is described in a mnemonic as “ACCURATE”.
A. True
B. False.
3. Information that is not needed for a decision should be omitted, no matter how 'interesting' it may be.
A. True
B. False.
4. Executive support system and Executive information system are two different things?
A. True
B. False
5. Executive support system is an information system for ………………………………………… executives.
A. Junior
B. Middle line

14
C. Senior
6. (ESS) Executive support system pool data from …………………………………………………………..
A. Internal Sources
B. External Sources
C. Out Sources
D. Both internal and external.
7. Management information system provides information to management, of a routine or non-routine nature, by analyzing data and converting
it into organized information.
A. True
B. False.
8. Management information system mainly rely information which collected from ……………………………………..
A. Internal Sources
B. External Sources
C. Out Sources
D. Both internal and external
9. ……………………………………. Is an internal computer system within an organization that uses the internet to link distance terminal to main or
central server? Or network is used to connect to the main system of the organization.
A. Internet
B. Extranet
C. Intranets
D. Cable and wire.
10. Intranet system cannot connect to other systems or terminals by internet.
A. True
B. False
11. Intranet is a mini version of internet.
A. True
B. False.
12. ………………………. Is a system which allows organization external users such as supplier or customers to access the main/other network
system with a valid username and password on all areas which are permitted to visit or viewed?
A. Internet
B. Extranet
C. Intranets
D. Cable and wire.
13. Extranet is an advance version of intranet with special features.
A. True
B. False.
14. Management information system (MIS) provide structured information (Organized information) and have an internal focus.
A. True
B. False.
15. Decision support system (DSS) are system that provide support for managers in making decision for ………………………….. Problems.
A. Structured
B. Visible
C. Documented
D. Unstructured or Semi structured.
16. Spread sheet is an example of …………………………………. System, it is also flexible and user friendly and helpful in decision making.
A. Management information system
B. Expert System
C. Decision support System
D. Knowledge work system.
17. Legal advice system, investment advice system, medical diagnosis system and tax advice system are the example of ……………………….
A. Management info system
B. Transaction processing system
C. Knowledge work system
D. Expert system
18. Expert system is a ……………………………..
A. Computer system which help in productivity rise
B. Computer system which help to educate people
C. Computer software with artificial intelligence of expertise.
D. Record and perform routine transactions.
19. Expert system used database of facts and rules for decision making. Example bank credit approval system.
A. True
B. False.

15
20. ………………………. Are information systems that facilitate the creation and integration of new knowledge into an organization
A. Management info system
B. Transaction processing system
C. Knowledge work system
D. Expert system
21. Which of the following are not the examples of Office Automation System (OAS).
A. Word processing, desktop publishing, and digital filing systems
B. E-mail, voice mail, videoconferencing, groupware, intranets, schedulers
C. Spreadsheets, desktop databases
D. Personal Security system.
22. Staff themselves are one of the prime source of internal information.
A. True
B. False.
23. ………………………………… is a process of gathering, analyzing, and dispensing information for tactical or strategic purposes
A. Physical information
B. Internet
C. Environmental scanning
D. Management information system
24. Research and development (R & D) work often relies on information about other R & D work being done by another company or by
government institutions.
A. True
B. False
25. …………………………..focuses attention on those items where performance differs significantly from standard or budget.
A. Exception reporting
B. Internal Audit
C. Environmental scanning
D. External Audit.
26. Gordon works in the accounts department of a retail business. He and his colleagues are looking at the sales figures for various types of
clothing. The director asks them to use exception reporting to summaries their findings. Which of the following correctly defines the concept of
‘exception reporting’ within a business context? (BPP RK)
A. The reporting of exceptional events, outside the normal course of events.
B. The analysis of those items where performance differs significantly from standard or budget.
C. The preparation of reports on routine matters on an ‘ad hoc’ basis.
D. The scrutiny of all data as a matter of course saves in exceptional circumstances
27. Organization required information for a range of purposes. Which of the following is incorrect?
A. Planning
B. Controlling
C. Decision Making
D. Entertainment.
28. Data consists of numbers, letters and symbols and relates to facts, events and transactions.
A. True
B. False
29. Information about personnel will be linked to the…………………….. System.
A. Production
B. Accounting
C. Auditing
D. Payroll
30. Database management system (DBMS) is best describe as …………………………………………………..
A. Database that is used to record old records
B. Tool needs to increase productivity and effective internal control.
C. Is a type of Database auditing which work as a check and balance for data security?
D. Software that manages a database dealing with all aspect of access of data, file maintenance and data security.
31. Which of the following about database advantages are not correct?
A. Database avoids duplication of data.
B. New software can easily be linked with the data base to create new reports etc.
C. There are no problem about data security and privacy.
D. Data can be process as per the requirement of the user
E. Confecting of date in different departments is reduce.
32. Standard software available for creating simple database are very costly as compare to organization self created database.
A. True
B. False
33. The ……………………… is a global network connecting million of computer. It is used to send and received information from any location.
A. Intranet

16
B. Extranet
C. Internet.
D. Cable.
34. ………………………………….. Consist of data analysis models, and may have access to database to extract data for analysis. It should provide the
user with information about a number of different alternatives or different possible outcome.
A. Management information system
B. Expert System
C. Decision support System
D. Knowledge work system.
35. Environment auditing and environmental scanning are two names of one thing.
A. True
B. False.
36. Which one of the following is not the characteristic of a database?
A. It should be shared
B. It should be providing for the need and requirement of different users when needed.
C. It is a deemed to safe and secure in any condition including physical and technical.
D. It should have the capacity to overcome future needs. Or have the tendency to update in future.
37. Database has the tendency to overcome any error by human posting. It automatically detects the error and beef alert.
A. True
B. False.
38. Data and information come from both inside and outside sources of an organization.
A. True
B. False.
39. The measures an organization can take to protect information and information systems can be classified into which three of the following?
A. Security controls
B. Disclosure controls
C. Integrity controls
D. Contingency control.
40. An expert system always provides the correct solution to a problem.
A. True
B. False.
41. Which one of the following is incorrect source of environmental scanning information?
A. Consultants and other information bureau
B. Newspaper and other magazines.
C. Libraries and other electronics data source.
D. Company internal data information
E. The government.
42. A …………………………… is a collection of structural data.
A. Database
B. Database management system
C. Work sheet
D. Module.
43. A …………………………. performs and records routine transactions, at an operational level.
A. Executive Support System (ESS)
B. Knowledge Work System (KWS)
C. Decision Support System (DSS)
D. Transaction Processing System (TPS)
44. An ESS is a strategic-level system and DSS a management-level system
A. True.
B. False.
45. ……………….. is the system by which organizations are directed and controlled by their senior officers.
A. Corporate governance
B. Strategic management
C. Executive directorship
D. Internal controls
46. S.R.T University installs a main frame computer in its IT department which has 45 terminals. Each terminal leads to different officials of the
university, from where they can access installed information. External users are not allowed to use this system. Employees can also access
internet for office use through this system. This is known as ………………………………. System.
A. Intranet
B. Extranet
C. Internet.
D. Cable net.

17
47. Sigma distributors have installed a computer at its main office which can be connected via internet. Sigma has 235 different dealers. All
dealers have given a valid user name and password so they can access authorized area and their account status from their offices and gave
online orders and check inventory levels etc. Sigma has no online website. What kind of system is this?
A. Intranet
B. Extranet
C. Internet.
D. Cable net.
48. Management / Tactical information is required to deal with cash flow forecasts and working capital management.
A. True.
B. False.
49. ………………………… is help to performed in typical office such as document management, facilitating communication and managing data.
A. Knowledge Work System.
B. Expert System.
C. Decision Support System.
D. Office Automation System.
50. Sophisticated software’s, accounting programs, and others skill and knowledge base programs are an example of …………………………..
B. Expert System.
C. Decision Support System.
51. ……………………………. Systems are used at operational level for routine processing of data items and transactions. That is inventory system
and sales/purchase order processing system.
B. Expert System.
C. Transaction processing system.
Answers ofChapter. 2.
1 B 11 A 21 D 31 C 41 D 51 C
2 A 12 B 22 A 32 B 42 A 52
3 A 13 A 23 C 33 C 43 D 53
4 B 14 A 24 A 34 C 44 A 54
5 C 15 D 25 A 35 B 45 A 55
6 D 16 C 26 B 36 C 46 A 56
7 A 17 D 27 D 37 B 47 B 57
8 A 18 C 28 A 38 A 48 A 58
9 C 19 A 29 D 39 B 49 D 59
10 B 20 C 30 D 40 B 50 A 60
Explanation.
1. Information should be cost effective.
4. ESS is also called EIS.
10. False because in large organization data is held in one place and it is connected by internet.
16. Because it have analytical capabilities.
37. Database gave results what is entered. If you put garbage it gave you the same. It is not self corrected.
41. Environmental scanning gather information from outside not from inside.

18
Chapter 3. Influences on organization culture.
1. ………………………. Is the collective programming of the mind which distinguishes the members of one category of people from another?
A. Organization
B. Community
C. Culture
D. Values
2. Power culture is also known as …………………………………… culture.
A. Role
B. Task
C. Club
D. Personal
3. ………………………………. Is the GOD of power culture?
A. Athena
B. Dionysus
C. Apollo
D. Zeus
4. Power Culture is best considered for ……………………………. Organization.
A. Limited Companies
B. Large organizations
C. Government owned
D. Small size entrepreneurial Org.
5. Power Culture. Control remains in the central point. Organization is capable of adopting change quickly.
A. True.
B. False.
6. No matter how long the size of the organization power culture remains strong and effective.
A. True
B. False.
7. ………………………….. Culture is also known as bureaucracy culture.
A. Role
B. Task
C. Power
D. Personal
8. …………………… is the GOD of role culture.
A. Athena
B. Dionysus
C. Apollo
D. Zeus
9. The Responsibilities of each individual are defined by the job in the role culture, worker are not allowed to over step their limits.
A. True
B. False.
10. Role / Apollo organizations are very effective in small working group or small companies.
A. True
B. False
11. Task culture is also known as ……………………………………
A. Athena
B. Dionysus
C. Apollo
D. Zeus
12. In the task culture the focus is on the other things i:e rules, procedures, and system.
A. True
B. False
13. Task culture (Athena) there is a clear leader to control the project team or role team.
A. True
B. False
14. Task culture is very cheap and economical.
A. True
B. False.
15. Task culture is well suited to an organization that is continually facing new problems and challenges. IT and Knowledge base etc.
A. True
B. False.

19
16. Personal culture is also known as …………………………………………….
A. Athena
B. Role
C. Existential culture
D. Power culture.
17. Power culture the entire organization structure is built around one individual or a group of individuals. The rest of the organization exists to
serve the needs of the central individual.
A. True
B. False.
18. …………………………….. Is the GOD of personal culture.
A. Athena
B. Dionysus
C. Apollo
D. Zeus
19. ……………………… refers to the way in which power is dispersed within the organization.
A. Uncertainty avoidance
B. Individualism
C. Masculinity
D. Power distance.
20. When subordinate expect involvement and participation in the decision making in power culture is known as ……………………………
A. Low power distance culture
B. High power distance culture.
21. High power distance culture expects more decentralization and top-down chain of command with no supervision.
A. True
B. False.
22. When the interest of the individual come before the collective interest of the group this is called ……………………………..
A. Uncertainty avoidance
B. Masculinity
C. Individualism
D. Power Distance.
23. Which of the following is not the type of culture Harrison classified in his type of cultures?
A. Power Culture
B. Masculinity
C. Role Culture
D. Task
E. Personal culture.
24. Which of the following is not the model of Hofstede’s model?
A. Power distance
B. Uncertainty avoidance
C. Task Culture
D. Individualism
E. Masculinity.
25. When a group feels threatened and endangered by unexpected and unfamiliar happenings is called …………………………………..
A. Power distance
B. Uncertainty avoidance
C. Task Culture
D. Individualism
26. Uncertainty avoidance organization have written rules & regulation, specialists & experts, and standardization.
A. True
B. False
27. Value of modesty, tenderness, consensus, focus on relationships and quality of working are quality of a man.
A. True
B. False.
28. An informal organization never exists alongside the formal one.
A. True
B. False.
29. The ………………………………… organization is a network of personal and social relationships.
A. Formal
B. Informal
C. Stakeholder
30. Which of the following are not the features of informal organization?

20
A. Its accepts social relationship and grouping within or cross formal structure.
B. It’s have informal way of communication. Grapevine, bush telegraph or others.
C. Its working style are bureaucrative
D. Power influence structures.
31. The focus of the informal organization are people not the work.
A. True
B. False.
32. Which of the following are the benefits of informal organization?
A. Employees are satisfied, lack of absenteeism and low turnover.
B. Informal org. Gave knowledge to its worker through informal networks.
C. Speed of the informal org. Is very fast and effective as compare to formal one.
33. Informal work practice may cut corners, violating safety or quality assurance measures.
A. True
B. False.
34. …………………………. Are those individuals or groups that, potentially, have an interest in what the organization does.
A. General people
B. Investors
C. Auditors
D. Stakeholders.
35. Which of the following is not the type of stake holder?
A. Internal
B. Connected
C. Observer
D. External.
36. Internal stake holders are the government, community and pressure groups.
A. True
B. False.
37. Which of the following are the connected stakeholders of the company?
A. Government, community and pressure groups
B. Employees and management of the company
C. Suppliers, bankers, customers and shareholders
D. Police, NGOs and Army.
38. A primary stakeholder is one whose financial or personal situation is correlated directly with the performance of a business. There are 2
type of primary stakeholders first is internal and other is connected.
A. True
B. False.
39. Secondary stake holders are called external stakeholders who have no direct link in personal or finance in the company.
A. True
B. False
40. Stakeholders and shareholder of the company mean the same
A. True
B. False
41. Power of the stakeholder. The key players are found in the group D those are key customers and decision makers.
A. True
B. False.
42. Power of the stakeholders. The stakeholder in the group C (large institute and shareholders) should be kept satisfied because?
A. They love to have knowledge
B. They are in the high power and high interest zone
C. They can move to level A at any time
D. Then can move to the key player level D at any time.
43. The stakeholder in the level B (community and charity) is not important at all.
A. True
B. False.
44. Culture develops over time and can change instantly as a result of single major event. E.g. death of the owner etc.
a. True
b. False.
45. Which of the following is not the culture classified by Harrison.
A. Power Culture
B. Role Culture
C. Power Distance.
D. Task Culture

21
E. Existential or Person culture.
46. Which of the following is also called as club or spider web culture.
A. Power Culture
B. Role Culture
C. Task Culture
D. Existential or Person culture.
47. Which of the following statement about power culture is incorrect?
A. The organization is capable of adapting quickly to changes.
B. Personal influence decrease as the size of the organization grows over 20 people.
C. Leader has direct communication with rest of the employee’s.
D. These type of organization have strict bureaucratic rules and regulations.
E. These Organizations are club of like minded people introduce by like minded people.
48. Army, Navy, Air Force, Police and intelligence agencies are example of …………………………… culture.
A. Power Culture
B. Role Culture
C. Task Culture
49. Role culture organization relay on formal communication rather than informal communications and are best for large formal organizations.
A. True.
B. False.
50. Blue soft corp. has a task to develop a banking software for one of its client. Mr. James was the project in charge while Mr. Remand was the
lead programmer. Staff respect and accept the authority of Mr. Remand because of its skills and knowledge he have and shown in this project
rather than the project in charge. What kind of culture is blue soft corp. is?
A. Power Culture
B. Role Culture
C. Task Culture
51. IT companies, knowledge base companies, construction and building companies are the example of ……………………………..
A. Power Culture
B. Role Culture
C. Task Culture
52.
Answers ofChapter. 3.
1 C 11 A 21 B 31 A 41 A 51 C
2 C 12 B 22 C 32 D 42 D 52
3 D 13 B 23 B 33 A 43 B 53
4 D 14 B 24 C 34 D 44 A 54
5 A 15 A 25 B 35 C 45 C 55
6 B 16 C 26 A 36 B 46 A 56
7 A 17 A 27 B 37 C 47 D 57
8 C 18 B 28 B 38 A 48 B 58
9 A 19 D 29 B 39 A 49 A 59
10 B 20 A 30 C 40 B 50 C 60

22
Explanation.
6. Power culture is effective if the size is under or near 20 people.
10. Best for stable organization when large and when the work is predictable.
12. In Task culture the main focus is on the task to complete it in the best effective way.
13. There is no dominated or clear leader.
14. Task culture is expensive because expert charge market price.
21. Greater Centralization and top down chain of command and closer supervision.
27. These are the qualities of a men / masculinity.
28. It’s always exists with the formal one.
37. Internal stakeholders are the company employees and the management.
38. Stakeholder has link in personal or finance like employee or bank. While shareholders are the owner of the co.
43. They are important and they should be kept informed.
Chapter 4. Ethical considerations.
1 …………………………. Played a very important role in development of the rules for the individuals and many of them are still in place today.
A. Sports
B. Culture
C. Religion
D. Tribe.
2. There are three main sources of rules that regulate behavior of individuals and businesses. State the one which is incorrect.
A. The law
B. Non-legal rules and regulation
C. Ethics
D. Customs
3. Ethical behavior is seen as the highest level of behavior that society expects.
A. True
B. False
4. All managers have a duty of faithful service to the external purpose of the organization and this lies most heavily on the shoulders of those
at the …………………………………………..
A. Internal auditors
B. Strategic apex
C. External auditors
D. Accountant Dept.
5. Organization are autonomous, they exist to serve their own purpose or those of their senior managers or management.
A. True
B. False
6. ………………………… is a set of moral principles to guide behavior.
A. Rules
B. Ethics
C. Laws
D. Regulation
7. Ethical thinking is also influenced by the concepts of virtue and rights.
A. True
B. False
8. …………………………………… consists of the customs, attitudes, beliefs and education of society as a whole, or of different groups in society.
A. Political environment
B. Ethical environment
C. Social environment
D. Corporate environment
9. …………………………………….. Environment consists of a set or sets of well-established rules of personal and organizational behavior.
A. Corporate
B. Social
C. Political
D. Ethical
10. Political environment is in which an organization operates consists of laws, regulations and government agencies.
A. True
B. False.
11. The certainty of legal rules strongly exists in ethical theory?
A. True
B. False
12. The term Deontology means ……………………………. In Greek.

23
A. Fraud
B. Rules
C. Duty
D. Teeth and Gums.
13. The concept of Utilitarianism was propounded by ………………………………
A. Kent
B. Maxwell
C. Herzberg
D. Jeremy Bentham.
14. Kent believe that ………………………………..
A. Rule should not be followed if their results are not favored.
B. Rules should only be followed if they suit you
C. Rules must be obeyed no matter what the consequences may be.
D. Rules and regulations are not important at all.
15. Rights and Virtues mean that individuals have natural inherent rights that should not be abused.
A. True
B. False
16. In production and product : ………………. Have the responsibility to ensure that public and their own employees are protected from danger.
A. Internal auditors
B .Mentors
C. Trainers
D. Managers.
17. …………………………… refer to the payments for service to which a company is not legally entitled. E.g. Donation for election to political party.
A. Extortion
B. Grease money
C. Bribery
D. Gifts.
18. Peter is a project director in ENL limited. He was facing problem in obtaining the NOC from the local authority to start it works which his
company was legally entitle. The Local officer was asking some money to speed up the process which was given 1000 $ by Peter.
The act of the Peter is an example of ……………………………………
A. Extortion
B. Grease money
C. Bribery
D. Gifts.
19. Organization social responsibility action is likely to have an adverse effect on shareholders' interests.
A. True
B. False.
20. Social responsibility hit shareholder interest in the following way. Select the one incorrect.
A. Additional cost in order to protect environment and implement safety laws.
B. Resources utilize on social objective which reduce funds, productivity and profits.
C. Diversion of employee efforts in work.
D. Its increase short term stock price
E. Diversion of funds in social projects.
21. An environmental audit is useful in assessing which particular areas of your business impact on the environment, and to what extent. An
audit is also an effective risk management tool which enables you to check how effectively your business acts in accordance with environmental
legislation.
A. True
B. False.
22. Environment auditing and environmental scanning are two names of one thing.
A. True
B. False.
23. In ethical climate of an organization leader set an example. Senior manager are also symbolic managers.
A. True
B. False.
24. ………………………………… means that company should acts with in the letter of the law, and that violations are prevented, detected and
punished.
A. Ethical practice
B. Integrity based program
C. Compliance based approached
25. Only professional accountants not students are expected to behave in accordance with the professional code of ethics, and to maintain
standards of moral behavior that are expected from a professional body.
A. True
B. False.

24
26. Whistle blower is a person who ……………………………………………………..
A. Use to blower whistles while working
B. Warn you when there is a fire or other emergency in the organization
C. Disturb the worker with his poor habits
D. Disclosure by an employee of illegal, immoral or illegitimate practice on the part of the organization or body of people.
27. What is the key reason for an accountant to act or behave ethically?
A. The accountant impression and personality will increase.
B. In order to secure this job it is required to do so.
C. This ethical behavior serves to protect the public interest.
D. To avoid accountability.
28. A set of guidance are given in order to understand an individual judge whether or not they are acting ethically in particular condition are
called …………………………………….
A. Rules of Business
B. Code of Conduct / Ethics
C. Principles
D. Regulations.
29. ……………………………………………….. Is an international body representing all the major accountancy bodies across the world. Its mission is to
develop the high standards of professional accountants and enhance the quality of services they provide.
A. IFAC
B. GAAP
C. IAS
D. ACCA.
30. IFAC ………………………………….. Establish a code of ethics.
A. Audit committee
B. Ethic’s committee
C. Regulation committee
D. Accountants committee.
31. Which of the following one is not the professional quality of an accountant?
A. Independence
B. Skepticism
C. Accountability
D. Respect
E. Social responsibility.
32. An Accountant should complete it work without bias or prejudice and should also be seen independent.
A. True
B. False.
33. Which of the following is the personal quality of an accountant? State the one incorrect.
A. Reliability and Respect
B. Courtesy
C. Responsibility and Timeliness
D. Skepticism
34. Organization founder acts and habits can influence the organization culture.
A. True.
B. False.
35. The law is the minimum level of behavior required any standard of behavior below it is considered illegal and warrants punishment by
society.
A. True.
B. False.
36. Society we live in can exist without rules and standards.
A. True.
B. False.
37. Managers have a fiduciary responsibility (or duty of faithful service) in this respect and their behavior must always reflect it.
A. True.
B. False.
38. Is this possible that a manager who didn’t get any material benefit themselves can still held responsible for not fulfilling the principle of
fiduciary duty.
A. True.
B. False.
39. Ethics in organization. Companies have to follow legal standards, or else they will be ……………………
A. No law in order in the organization.
B. Poor production and quality issues.
C. Subject to fine by authorities and their officers might also face similar charges.
D. A big cut in the corporate earnings.

25
40. Ethics in organization. Some time managers have to do some payments to government or municipal officials who have the power to help or
hinder the payers operation. Which one of the following is not correct?
A. Extortion.
B. Bribery
C. Grease money
D. Govt. Taxes
E. Gifts.
41. Whistle blowing frequently involves financial benefits for the whistleblower.
A. True.
B. False.
42. Key reasons for accountants to behave ethically: State the one incorrect?
A. Ethical issues may be a matter of law and regulation and accountants are expected to apply them
B. The profession requires members to conduct themselves and provide services to the public according to certain standards. By upholding
these standards, the profession’s reputation and standing is protected
C. Accountant has a fear for losing his job.
D. An accountant’s ethical behavior serves to protect the public interest.
43.
Answer Chapter 4. Ethical considerations.
1 C 11 B 21 A 31 D 41 B 51
2 D 12 C 22 B 32 A 42 C 52
3 A 13 D 23 A 33 D 43 53
4 B 14 C 24 C 34 A 44 54
5 B 15 A 25 B 35 A 45 55
6 B 16 D 26 D 36 B 46 56
7 A 17 C 27 C 37 A 47 57
8 C 18 B 28 B 38 A 48 58
9 D 19 A 29 A 39 C 49 59
10 A 20 D. 30 B 40 D 50 60
Explanation.
5. They exit to serve the external purpose and managers are responsible for it.
12. The certainty of legal rules does not exist in ethical theory
19. Because its reduce profit and increase cost. E.g. Water treatment plant.
22. False Environmental scanning is a process of gathering, analyzing, and dispensing information for tactical or strategic purposes
25. Both must follow.
27. A is also a good choice but C is the best one.
33. RRRTC. Remember none of the professional quality start with these 5 letters. Just remember RRRTC.
38. Yes because some time they do certain things that gave them inner satisfaction and those result as negative for the org.
42. Whistle blowing frequently involves financial loss for the whistleblower.

26
Chapter 5. Corporate governance and social responsibility.
1. Stewards are the owner of a company. They are not accountable to anyone.
A. True
B. False
2. Shareholders of the company can dismiss the steward or the executive management of the company.
A. True
B. False.
3. Shareholder of the company received relevant information of the company by …………………………….. Source.
A. News papers and magazines
B. TV or News channels
C. Emails or by stock exchanges
D. Audited accounts / annual reports.
4. Agency theory of management states that managers …………………………………………………….
A. Should manage the organization that will benefit the stake holders
B. Should manage the organization that will benefit the Shareholders only
C. Management seeks to service their own interest and only look after the performance of the company.
D. Manager has the duty of care, for all the stake holders and share holder of the company.
5. ………………………… states that management has a duty of care, not just to the owners of the company in terms of maximizing shareholder
value, but also to the wider community of interest, or stakeholders.
A. Stewardship theory
B. Agency Theory
C. Stakeholder theory
D. Governance theory.
6. …………………………… is the system by which organization are directed and controlled by senior officers or management.
A. Procedure
B. M I S
C. Corporate governance.
D. Operational management.
7. Which of the following is not the feather of poor corporate governance?
A. Dominate by single individual / Lack of involvement of the board
B. Lack of adequate control function / Lack of supervision
C. Lack of independent scrutiny / lack of contact with shareholders
D. Emphasis on short term profitability / Misleading accounts and information
E. None of the Above.
8. In few cases it is observed that Board is dominated by a single senior executive while other members merely acting like a rubber stamp.
A. True
B. False.
9. In most countries, what is the usual purpose of codes of practice on corporate governance? (BPP)
A. To establish legally binding requirements to which all companies must adhere
B. To set down detailed rules to regulate the ways in which companies must operate
C. To provide guidance on the standards of best practice that company should adopt
D. To provide a comprehensive framework for management and administration
10. The performance of the Director in the board cannot be assessed by the board.
A. True
B. False.
11. One tier board is also known as unitary system.
A. True
B. False.
12. …………………………… is the type of board in which board of directors are legally charged with the responsibility of govern the company.
A. One tier board / unitary system.
B. Two tier board
C. Non Executive board
D. Supervisory board.
13. …………………………system there is an executive management board of directors and this is monitored by a supervisory board of directors.
A. Single type BOD
B. One tier board / unitary system
C. Supervisory board
D. Two tier board
14. Which of the following task should not to be performed by the board of directors?

27
A. Monitoring the C.E.O and overseeing strategy
B. Monitoring the human capital including training, morale, and remuneration etc.
C. Monitoring risk and control system.
D. Interfere management daily business operations.
15. The board of directors should be of same knowledge and work experience to have a uniform policy.
A. True
B. False.
16. Member of the board of Director. Directors are needless to have relevant expertise in industry, company function area and governance.
A. True
B. False
17. Member of the BOD are recommended by the …………………………….. Committee.
A. Director
B. Audit
C. Nomination
D. Security
18. Higgs report stresses that it is the responsibility both of the Chair to decide what information should be made available, and directors to
satisfy themselves that they have appropriate information of sufficient quality to make sound judgments.
A. True
B. False.
19. Higgs report suggests that the appraisal of the board performance should be done 4 times a year.
A. True
B. False.
20. Directors of a company are accountable to …………………………………. Of the company.
A. Management
B. CEO
C. Share holders
D. General Public.
21. What is the key risk associate, if the director’s accountability is associate to its performance?
A. That he will get angry
B. Over work will cause negative effect on this heath.
C. Interference in other people work.
D. Attention being diverted away from making the company profitable, potentially damaging the long-term success of the business
22. Non-executive directors have executive (managerial) responsibilities.
A. True
B. False
23 …………………………. Are responsible for determining appropriate levels of remuneration for executive directors and other senior managers.
A. Directors
B. Non Executive Directors
C. Board of executives
D. Senior management
24. Audit and remuneration committee should have equal member of executive and non executive directors.
A. True
B. False.
25. Remuneration committee should also decide the fees and benefits for the NEDs.
A. True
B. False.
26. Non executive directors are entitled to get pension after retirement.
A. True
B. False.
27. The nomination committee should consist of a majority of ……………………………………..
A. Non-executive directors
B. Executive directors
C. Independent / Outsource experts
D. CEO and Chairman.
28. ………………………………….Can provide help and assistance in the case of any problem facing by the external auditors.
A. Government
B. Employees union
C. Internal auditors
D. Audit committee.
29. External auditors are appointed and remove by the …………………………….. Committee of the board of directors.
A. Accounts committee
B. Risk control

28
C. Audit committee
D. Nomination committee.
30. Which of the following is not the duty of the audit committee?
A. Review of the financial statement
B. Liaison with external auditors / review of internal auditor
C. Review of the internal control / Investigation
D. Review of the financial risk or risk management.
E. None of the above.
31. Which of the following is not the social responsibility strategy?
A. Proactive
B. Reactive
C. Defense
D. Accommodation
E. Feedback.
32. …………………………. Strategy in which company takes full responsibility of its product and in case of any defect it fix it before complain.
A. Proactive
B. Reactive
C. Defense
D. Accommodation
33. ……………………….. Strategy in which company take action regarding its complain only when it came in the notice of the govt. Consumer or
regulators. Else it keeps things going on.
A. Proactive
B. Reactive
C. Defense
D. Accommodation
34. According to the stakeholder view, CSR is in the long-term interests of shareholders because it helps to secure stakeholder support, access
to resources, sustainable business relationships and so on
A. True.
B. False.
35. Which of the following is not the driving force for the development of corporate governance?
A. Increasing internationalization and globalization.
B. Differential treatment of domestic and foreign investors.
C. Concerning over financial reporting.
D. High profile corporate scandals.
E. Empowerment of lower management.
36. The board that meet irregularly or fail to consider systematically the organization’s activity and risk are sign of …………………..
A. Good corporate governance.
B. Lack of none executive directors participation.
C. Weakness and ineffectiveness.
D. Normal activity.
37. Rapid turnover of staff in the accounting or control department will results into …………………………………
A. Creating new vacancies for fresh graduates.
B. Out of turn promotions and rise in salary.
C. Put extra work load on the sales and recovery team.
D. Make control more difficult because of lack of continuity.
38. Time has proved that the principle of employee’s supervision by senior management has failed to reduce or control large losses for the
organization. Employee’s incompetence, negligence and fraudulent activity cannot be control by supervision.
A. True.
B. False.
39. Segregation of duties of key roles can play an important role in effective corporate governance.
A. True.
B. False.
40. Remuneration packages regardless to the results or performance of the directors has resulted into poor performance and lack of touch with
the interest of the other shareholders in the company.
A. True.
B. False.
41. What is the ultimate risk of poor corporate governance?
A. Company will have a poor internal control structure.
B. Board of director will consider for outsourcing internal control department.
C. Shareholders will start selling their shares in the capital market.
D. May results in bankruptcy or may be even closed by govt. authorities due to serious regulatory breaches etc.
42. What is the responsibility of a Public Oversight Board? (PP)
A. The establishment of detailed rules on internal audit procedures
B. The commissioning of financial reporting standards

29
C. The creation of legislation relating to accounting standards
D. The monitoring and enforcement of legal and compliance standards
43. Board of Directors should take the following decisions. Which of the following one is incorrect?
A. Mergers and takeovers.
B. Acquisitions and disposals of large or valuable assets.
C. Material purchases and determines minimum inventory level.
D. Investments / Bank borrowings / Capital projects.
E. Repayment of foreign currency transactions etc.
44. Corporate governance gave permission to the none-executive directors to take part in share options scheme.
A. True.
B. False.
45. Accounts should show the remuneration policy, pension rights and the packages of individual directors.
A. True.
B. False.
46. Nomination committee of the board of directors should totally consist of none-executive directors.
A. True.
B. False.
47. Audit committee and remuneration committee should have equal numbers of executive Directors and N.E.Ds.
A. True.
B. False.
48. The appointment of the NEDs is done by the nomination committee.
A. True.
B. False.
49. Sustainability reporting in the financial accounts mean……..
A. That the company should disclose about its future plans.
B. About its going concern.
C. Social transformation, ethical, safety, health and environment management policies and practices.
D. About getting information from internal and external sources.
50. Sustainability reporting is also known as social responsibility report.
A. True.
B. False.
51. Social responsibility and ethical behavior are not the same things.
A. True.
B. False.
52. Ethics are values and principles that society expects companies and individuals to follow.
A. True.
B. False.
53. Which of the following are not the strategies for the social responsibility? State the one incorrect?
A. Proactive strategy.
B. Reactive strategy.
C. Defense strategy.
D. Corporate strategy.
E. Accommodation strategy.
54.
Answer Chapter 5.
1 B 11 A 21 D 31 E 41 D 51 A
2 A 12 A 22 B 32 A 42 D 52 A
3 D 13 D 23 B 33 B 43 C 53 D

30
4 C 14 D 24 B 34 A 44 B 54
5 C 15 B 25 B 35 E 45 A 55
6 C 16 B 26 B 36 C 46 B 56
7 E 17 C 27 A 37 D 47 B 57
8 A 18 A 28 D 38 B 48 B 58
9 C 19 B 29 C 39 A 49 C 59
10 B 20 C 30 E 40 A 50 A 60
Explanation.
1. They are the executive managers and accountable to shareholders.
10. Their performance can be check.
15. Should have a mix bag of knowledge and experience.
16. Should have industry knowledge and expertise.
19. It should be done only once a year.
22. Non-executive directors have no executive (managerial) responsibilities
24. These both committees should have only NEDs
26. NEDs will not get any pension after retired.
38. Supervision has turn in reduction of employee’s poor performance related issues.
46. There should be a mix of both Directors and N.E.Ds with N.E.Ds in majority.
47. These both committees are totally consist of NEDs.
48. The nomination committee only recommends the names to the BOD. Their appointment is done by the board.
Chapter 6. The micro economic environment.
1. ……………………….. Mean that the expenditure, output and income will all have the same total value.
A. Circular flow of income
B. Circular flow of expenditure
C. Cash flow
D. Balance of payment.
2. Which of the following is not the withdrawal from the circular flow of income?
A. Import
B. Savings
C. Taxation / expenditure
D. Investments
3. Which of the following is not the injection in the circular flow of income?
A. Investment
B. Saving
C. Export
D. Govt. Spending
4. Saving is different from investment. Saving means withdrawal of money from the circulation.
A. True
B. False
5. Economy normally remains in the stable state.
A. True
B. False.
6. Economy is influence by many factors. Which of the following is the best answer?
A. Investment level
B. The multiplier effect and confidence
C. Inflation and saving
D. Interest and exchange rate
7. Total expenditure in the economy is one way of measuring the national income.
A. True
B. False.
8. The two main problem for the economy are inflation and ………………………………..
A. Savings
B. Investments
C. Taxes
D. Unemployment.
9. The total demand in the economy for goods and services is called the …………………………..

31
A. Demand
B. Demand and supply
C. Aggregate demand
D. Total demand.
10. ……………………………… refers to the ability of the economy to produce goods and services.
A. Total production
B. Aggregate demand
C. Inflation
D. Aggregate supply.
11. When the total demand for goods and services in the economy is equal to the half the supply of goods and services in the economy this is
known as equilibrium level of the national income.
A. True
B. False.
12. Aggregate supply is positive related to the price level.
A. True
B. False
13. …………………….. Is a combination of unacceptably high unemployment and unacceptably high inflation.
A. Inflation
B. Deflation
C. Stagflation
D. Inflationary gap
14. Business cycle is also known as trade cycle or economic cycle.
A. True
B. False.
15. Which of the following is the stage/phase of business cycle?
A. Recession
B. Depression
C. Recovery and Boom
16. The fall in national income is called recession.
A. True
B. False.
17. Recession tends to occur slowly, while recovery is typically a quicker process.
A. True
B. False
18. …………………………….. Refer to economy wide fluctuation in the production or economic activity over several months or year.
A. Depression
B. Business cycle / trade cycle
C. Stagflation
D. Deflationary gap.
19. …………………………… redistribute income and wealth.
A. Stagflation
B. Inflation
C. Deflation
D. None
20. In Inflation the person who owed money have advantage over the lender.
A. True
B. False.
21. In a country where rate of inflation is higher its imports will be expensive and exports will be cheaper.
A. True
B. False
22. Inflation affects the exchange rate.
A. True
B. False.
23. …………………. Decline the purchase power of the money.
A. Expenses
B. Boom
C. Inflation
D. Deflation.
24. Healthy economy requires no inflation.
A. True
B. False.

32
25. A consumer price index (CPI) is based on a chosen 'basket' of items which consumers purchase.
A. True
B. False
26. Which of the following is indicated by the CPI data? Choose the best answer given below.
A. Indicator of inflationary pressure in the economy
B. Benchmark for wages negotiations
C. Determine annual increase in Govt. Benefits payments.
D. All of the above
E. None of the above.
27. When inflation become excessively high it is called ……………………………………..
A. CPI
B. RPI
C. Fiscal Pressure
D. Hyperinflation.
28. Retail price index is also stated as RPI.
A. True
B. False
29. ……………………………………..measures the percentage changes month by month in the average level of prices of the commodities and services,
including housing cost.
A. Consumer price index
B. Inflation rate
C. Retail price index
D. Benchmark index.
30. In the case of abnormal inflation people are unwilling to use money and forced to go back to ……………………………………….
A. Leverage system
B. Future Trading system
C. Barter system
D. Gold system.
31. ………………………………………. Inflation resulting from a persistent excess of aggregate demand over aggregate supply. Supply reaches a limit on
capacity at the full employment level.
A. Cost push inflation
B. Demand pulls inflation
C. Import cost factors
D. Expectations
32. ………………………………..inflation resulting from an increase in the costs of production of goods and services, e.g. Through escalating prices of
imported raw materials or from wage increases.
A. Cost push inflation
B. Demand pulls inflation
C. Import cost factors
D. Expectations
33. When inflation becomes a relatively permanent feature of rise in price and wages it is called wage-price spiral.
A. True
B. False.
34. Inflation can be brought in control by reducing the rate of growth of money supply.
A. True
B. False.
35. ………………………… unemployment is when an employee has left one job in order to start at another. If there is a gap of time between leaving
one top and starting the next.
A. Structural unemployment.
B. Frictional unemployment.
C. Transitional unemployment.
D. Cyclical unemployment.
36. Seasonal employment and frictional unemployment are long term.
A. True
B. False
37. Frictional unemployment is sometimes also called as search unemployment.
A. True
B. False
38…………………………………. Is caused due to the un-satisfaction of working or other condition to the employee and from the employer point of
view when he fail to get skill full worker for its work.
A. Structural unemployment.
C. Transitional unemployment.

33
39. …………………… is the type of unemployment which occurs due to a long term or significant change in the condition/structure of an industry.
That is closure of a mining industry.
A. Frictional unemployment.
B. Transitional unemployment.
C. Cyclical unemployment.
D. Structural unemployment.
40. It is impossible to create more jobs without reducing unemployment.
A. True
B. False
41. Technological unemployment adds to the structural unemployment or it’s a form of Structural unemployment.
A. True
B. False
42. …………………………………….. Occurs due to the implication of new technology or machine takes over human workers.
C. Technological unemployment.
43. Structural unemployment, technological unemployment, and cyclical unemployment are all short term, and Less serious.
A. True
B. False.
44. ……………………… unemployment occurs in the downswing of an economy in between two boom.
C. Cyclical unemployment.
D. Structural unemployment
45…………………is the increase of per capita of GDP or other measure of aggregate income. Its often measured as the rate of change in real GDP.
A. Fiscal policy
B. Balance of payment
C. Trade deficit.
D. Economic growth.
46. Economic growth may be balanced when all sectors of the economy expand together or unbalanced.
A. True
B. False.
47. ………………………….is the annual percentage increase in national output, which typically fluctuates in accordance with the trade cycle.
A. Potential economic growth.
B. Actual economic growth.
C. G D P
D. Human Capital.
48. Potential economic growth is the rate at which the economy would grow if all resources (eg people and machinery) were utilized
A. True.
B. False.
49. Sustained economic growth depends heavily on an adequate level of new ………………………………..
A. Workers
B. Experts
C. Sources
D. Investment.
50. The rate of extraction of natural resources will have no impact on the rate of growth.
A. True
B. False
51. The use of new technology results in a very fast economic growth.
A. True
B. False.
52. Higher growth requires a cut in consumption. (See explanation)
A. True
B. False.
53. Microeconomic policy objectives are related to which of the following? Or what are the key objectives of MEP.
A. Economic growth.
B. Inflation and unemployment
C. Balance of payment

34
54. Economic growth implies increase in National income. Increases due to rise of prices is also a real economic growth.
A. True
B. False.
55. Does full employment means everyone who need a job have a one all the time?
A. True
B. False.
56. Creating full employment may lead to decreased inflation rates.
A. True
B. False
57. Taxes have no effect on consumer purchasing power.
A. True
B. False.
58. Government's most important economic role is the ……………………….. Relating to business.
A. Procedure
B. Decision making
C. Legal system
59. Governments can rise ………………………………….. To protect domestic industry.
A. Interest rates
B. Working hours
C. Wages
D. Trade barriers
60. Which of the following is the area covered under the fiscal policy, state the one incorrect?
A. Taxation
B. Public borrowing
C. Banking
D. Public spending.
61. When government plans what it wants to spend and so how much it needs to raise in income or by borrowing this called ……………..
A. Balance of payment.
B. Trade policy
C. Monetary policy
D. Fiscal policy.
62. When the government is injecting money into the economy, this is known as expansionary policy.
A. True
B. False.
63. When budget is surplus this is called contractionary policy or reducing the size of the money by taking money out of the economy.
A. True
B. False.
64. A ……………………………… is paid direct by a person to the Revenue authority.
A. Indirect tax
B. Donation
C. Direct tax
65. An ……………………………. Is collected by the Revenue authority from an intermediary (a supplier) who then attempts to pass on the tax to
consumers in the price of goods they sell.
A. Indirect tax
B. Donation
C. Direct tax
66. Which of the following is not the type of Indirect tax?
A. Regressive tax
B. Proportional tax
C. Progressive tax
D. Capital gain tax.
67. A………………………. Takes a higher proportion of a poor person's salary than of a rich person's. Television licenses and road tax are examples.
A. Regressive tax
B. Proportional tax
C. Progressive tax
D. Capital value tax.
68…………………….. Takes the same proportion of income in tax from all levels of income.
A. Regressive tax
B. Proportional tax
C. Progressive tax

35
D. Capital value tax.
69. …………………………….. Takes a higher proportion of income in tax as income rises.
A. Proportional tax.
B. Capital gain tax
C. Regressive tax
D. Progressive tax
70. A specific tax is charged as a fixed sum per 100 units sold.
A. True
B. False.
71. A sales tax is a consumption tax charged at the point of purchase for certain goods and services.
A. True
B. False
72. Direct taxes are progressive or proportional taxes.
A. True
B. False.
73. Monetary policy covers the following areas of the government policy? State the one incorrect.
A. Money supply
B. Interest rates and exchange rates.
C. Monetary system and availability of credit.
D. Public borrowing and spending.
74. High inflation brings economic uncertainty.
A. True
B. False.
75. ……………………. Is known as accounting records of all monetary transition between a country and the rest of the world.
A. Fiscal policy
C. Balance of trade
D. Monetary policy.
76. Which of the following increase national income?
A. Taxation
B. Imports
C. Government spending and investment
D. Savings.
77. Experts advice that ………………………. Can put, breaks on the inflation.
A. Fiscal policy
C. Exchange rate
D. Monetary policy.
78. The other name of balance of trade is balance of payment.
A. True
B. False.
79. ………………………………………. The difference between the value of goods and services exported out of a country and the value of goods and
services imported into the country.
A. Balance of payment
B. Monetary policy
C. Balance of Trade
D. International trades.
80. A balance of trade deficit is most unfavorable to domestic producers in competition with the imports, but it can also be favorable to
domestic consumers to buy exports products at lower prices.
A. True
B. False
81. If the country is having deficit in its current account (balance of payment) what are the consequences it may suffer? (any two)
A. It has to borrow more and more from aboard to meet the difference. Encourage more to invest In Govt. Bonds etc.
B. It has to sell its foreign or local assets to the foreign investors.
C. Its exchange rate will rise and will have a good impact on its exports.
D. It will result in the reduction of interest rates.
82. A positive current account balance means that the country is importing more goods and services than it is exporting.
A. True
B. False.
83. Which of the following is not the category of Balance of payment in which it records its transaction?
A. Current account
B. Capital account

36
C. Financial account
D. Exchange account
84. Balance of Payment. Goods, services, income and current transfers are recorded in current account.
A. True
B. False.
85. Balance of payment. In the financial account, physical assets such as a building or a factory are recorded.
A. True
B. False.
86. Balance of payment. Assets pertaining to international monetary flows of, for example, business or portfolio investments, are recorded in
A. Current account
B. Capital account
C. Financial account
D. Exchange account
87. Devaluation of currency will not help to reduce the current account deficit.
A. True
B. False.
88. A lower discount rate makes borrowing less expensive and increases the money supply.
A. True
B. False
89. The government of XYZ has taken the following steps.
1. The government will increase it public spending in health and education by 20 percent
2. That Government will issue Local currency bonds for local public to finance its deficit.
3. That the rate of taxation will be reducing by 1 percent to increase demand.
What kind of policy is this?
A. Monetary policy
B. Trade policy
C. Exchange policy
D. Fiscal policy.
90. Following steps are taken the government below. What are they called? Give the best one.
1. Buying government bonds from the public puts money into circulation by paying investors who hold these bonds.
2. The interest rates will be reducing by 100 basis points.
3. The exchange rate will be reducing by 2 percent.
4. Bank margin on credit will be eased.
A. Fiscal policy
B. Exchange policy
C. Trade policy
D. Monetary policy.
91. In economics the multiplier effects mean …………………….
A. All investment and expenditures are added
B. Combination of monetary and fiscal policy.
C. Injection of certain size leads to a much larger increase in national income.
92. Aggregate demand made from several components of the circular flow. Import is one of the main components of aggregate demand.
A. True.
B. False.
93. Which of the following one is not the factor of unemployment?
A. Redundancies
B. Voluntary quitting the job.
C. School leaving without jobs.
D. Lay-offs.
94. Rehmat was hired by a mango farmer to pick mangoes from the tree. Rehmat was employed on the farm for 2 months till the mango
picking season last later he has to wait for next 3 months for the orange picking season till he will remain unemployed. What type of
unemployment is this?
A. Seasonal unemployment.
C. Transitional unemployment
95. When an employee leave on job in order to start the other. The gap of unemployment between the two jobs is known as ……………………..
96. Tariq textile use to employee large number of employee’s for its cotton unit. For the last 2 years almost 35% of employees was dismiss due
to poor cotton crop in the country and the textile units was in a decline due to high prices of raw material. What type of unemployment is this?

37
97. Formal planning of fiscal policy is usually done once a year and is set out in the budget.
A. True.
B. False.
98. When government reduce the size of the money supply by taking money out of the economy, or its income is more than its expenditures it
is called ………………………………………
A. Fiscal policy
B. Expansionary policy
C. Economic policy
D. Contractionary policy.
99. When government increase the size of its money supply by injecting money into the economy. Or its income is less than its expenditures it
is called. …………………………………….
A. Fiscal policy
B. Expansionary policy
C. Economic policy
D. Contractionary policy.
100. Technological progress is divided into three important types. Which of the following is incorrect?
A. Capital saving.
B. Neutral
C. Labor saving.
D. Potential output.
Answer Chapter 6.
1 A 16 A 31 B 46 A 61 D 76 C 91 C
2 D 17 B 32 A 47 B 62 A 77 D 92 B
3 B 18 B 33 A 48 A 63 A 78 B 93 C
4 A 19 B 34 A 49 D 64 C 79 C 94 A
5 B 20 A 35 C 50 B 65 A 80 A 95 B
6 E 21 B 36 B 51 A 66 D 81 AB 96 D
7 A 22 A 37 A 52 A 67 A 82 B 97 A
8 D 23 C 38 B 53 D 68 B 83 D 98 D
9 C 24 B 39 D 54 B 69 D. 84 A 99 B
10 D 25 A 40 B 55 B 70 B 85 B 100 D
11 B 26 D 41 A 56 B 71 A 86 C
12 A 27 D 42 C 57 B 72 A 87 B
13 C 28 A 43 B 58 C 73 D 88 A
14 A 29 C 44 C 59 D 74 A 89 D
15 D 30 C 45 D 60 C 75 B 90 D
Explanation.
5. Its rarely in a stable state.
11. The total demand for goods and services in the economy is equal to the total supply of goods and services in the economy
17. Recession tends to occur quickly, while recovery is typically a slower process.
20. Because the value of money reduce.
21. Imports will be cheap and export will be expensive.
24. Its required some inflation.

38
36. Seasonal employment and frictional unemployment will be short-term
40. T is possible to create more jobs without reducing unemployment.
43. Structural unemployment, technological unemployment, and cyclical unemployment are all longer term, and more serious.
50. The rate of extraction of natural resources will impose a limit on the rate of growth
52. Firms need to invest more and this requires financing. This finance can only come from higher savings which in turn require the population
to consume less
54. Increase in National income due to increase in price is not a real national income.
55. Full employment does not mean that everyone who wants a job has one all the time, but it does mean that unemployment levels are low,
and involuntary unemployment is short-term.
56. Creating full employment may lead to increased inflation rates.
57. Taxation affects consumers' purchasing power.
70. A specific tax is charged as a fixed sum per unit sold.
73. Public borrowing and spending are the feature of fiscal policy.
78. The difference between the value of goods and services exported out of a country and the value of goods and services imported into the
country is balance of trade. While balance of payment is the total accountings record (import and exp) of a single country with the rest of the
world and its difference.
82. A positive current account balance means that the country is exporting more goods and services than it is importing.
85. In the capital account, physical assets such as a building or a factory are recorded
87. Its help to reduce the current account deficit.
92. Aggregate demand = (consumption + investment+ Govt. Investment + export) Minus (-) imports.
Chapter 7. The business environment.
1. The political environment is of particular importance in …………………………………. Trades.
A. Domestic
B. International
C. Barter
2. The …………………………………………….. Was set up to promote free trade and resolve disputes between trading partners.
A. European union.
B. Asian Trade
C. Euro Zone
D. World Trade Organization.
3. The theory of comparative advantage suggests that free trade is the best way to promote global economic growth and, by implication,
domestic prosperity. People should be free to buy and sell goods and services anywhere in the world
A. True
B. False
4. Retirement ages for men and women are being …………………………. In UK.
A. Different
B. Subject to their health and condition
C. Equalized
5. Organization offer and encourage retirement on the following reasons. State the one incorrect.
A. Promotion opportunities for younger workers
B. Earlier retirement is an alternative to redundancy
C. The age structure of an organization become unbalanced
D. The cost of providing pensions rise with age.
E. None of the above
6. When an employee leaves the organization it is important to ……………………………………………
A. To have a farewell party
B. To gave him a certification of its work.
C. To take advice from his experience
D. To take an exit interview to find out the reason of exit.
7. The period of notice required for the employee to leave the job should be set out in the………………………………..
A. Notice board of the company.
B. Should be on the desire of the worker
C. Contract of employment.
8. The European Union operates a single European market, allowing for the free movement of labor, goods and services, and free competition.
A. True
B. False.
9. The termination of an employee contract by the employer is not considered as dismissal in UK.
A. True
B. False.

Kamran acca f1 mc qs.

Recommended

Recommended

More Related Content

Similar to Kamran acca f1 mc qs.

Similar to Kamran acca f1 mc qs. (20)

Recently uploaded

Recently uploaded (20)

Kamran acca f1 mc qs.